Wednesday, August 22, 2012

Another wave of bull

In the previous post I highlighted a potential for a bearish move. We did have the follow through this morning but after the Fed minutes, the market reversed direction again. The short signal is now negated. We had a green close on ES after the bounce from the Bollinger center line. When ES opened again after market, it took out the previous day's high. This is pretty bullish. Most likely, we should see more upside in this wedge before it breaks down again. In EW terms, we saw the 4 wave today and should go higher to finish off the 5th.

Most likely this wedge will top out at around 1430-40, a number thrown around on the web. It should also setup a nice divergence on the Stochastics by then. I am playing on the bull side till then.

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